MEA's Green Building Landscape: Challenges and Opportunities Amid Rising Demand
The Middle East and Africa (MEA) are witnessing a notable rise in demand for green, sustainable buildings among both investors and occupiers. However, challenges such as high initial costs and a lack of knowledge among investors are hindering the region's progress towards achieving net-zero targets.
According to the Royal Institute of Chartered Surveyors (RICS) global sustainability report for 2023, approximately three-fifths of MEA contributors have observed an increase in investor demand for green buildings over the past year. This interest is commercially motivated, with a significant impact of green credentials on property values and rental rates. The MEA’s environmental factors, such as water conservation and energy efficiency, play a crucial role in the green building requirements. Notably, the region emphasizes effective waste management more than the global average.
Key Findings from the RICS Report
The report indicates that around three-fifths of MEA contributors have observed an uptick in investor demand for green buildings over the past year. This shift is not only environmentally driven but also commercially motivated, as a quarter of the investors believe green credentials significantly enhance the capital value of properties.
The MEA's unique environmental challenges shape its green building requirements. For instance, 40 percent of contributors emphasized the importance of minimizing water consumption, equally matched by the need for energy efficiency. Furthermore, a good indoor environment is prioritized by 37 percent of respondents, highlighting the region's distinctive focus.
Lama Saleh, Senior Sustainability Advisor, Goumbook, leads the recent “Take a Breath” campaign in partnership with Sanofi, as a UAE-wide awareness and educational initiative focused on improving indoor air quality across all sectors of society - including schools, corporates, other organisations, and members from the general public.
Saleh added that “addressing the challenge posed by unhealthy indoor air on our health and wellbeing requires a multi-stakeholder approach and involvement from all the sectors, harnessing the power of the collective to manage indoor air quality. We believe in the power of partnerships, aligning closely with the UAE government directives - both federally and locally, collaborating with universities, working with monitoring and reporting companies to test indoor air quality parameters in accordance with the WELL Building Standard, and liaising with various solution providers of low-cost affordable interventions to meet this challenge with action.”
Over a third of regional contributors report the importance of effective waste management in green buildings, a figure that notably surpasses the global average of around 16 percent.
A critical barrier identified is the lack of knowledge and expertise among investors. The report suggests that clearer legislation, like carbon pricing policies, could effectively support the sector's decarbonization efforts. The assessment of embodied carbon remains a neglected area, with approximately 48 percent of MEA respondents not conducting any such measurement. This lack of assessment impedes the informed choice of materials and components essential for achieving sustainability targets.
Diana Nilipovscaia, CEO at MERED, pointed out the significant progress in the MENA region, with over 5,300 projects adhering to LEED standards. She added that regulations like Dubai Green Building Regulations (DGBR) and the Dubai Municipality Green Building Regulations (DMGBR) enforce sustainable design, construction, water conservation methods and operational practices, promoting the use of eco-friendly materials and renewable energy.
Tekha Selim, Vice President & Head of MENA Region, IWBI, highlighted the UAE government's role in promoting Green and WELL buildings, including the WELL Health-Safety Rating. The integration of this program into Dubai’s RERA Ranking system serves as a model for government incentives.
Selim added, “This program is an evidence-based, third-party verified pathway for addressing acute health threats and focuses on operational policies, procedures, and protocols that help buildings and organizations address the health, safety, and well-being of their most valuable asset—people.”
Audrey Tirap Kalchinoska, Founder, Chateaux Middle East that focuses on sustainable furniture and showcasing eco-friendly practices in their operations, felt there was a need for tougher regulations, updates to standards, and rewards for developers.
While the MEA region is advancing in sustainable real estate, experts agree that more needs to be done. Education, stricter regulations, and incentives are key to ensuring that sustainable building practices are not only adopted but also continuously improved. As Tina Paillet, President Elect at RICS, states, understanding the scale and scope of emissions is the first step towards managing sustainability more effectively.
